China's HNA To Seal £2.3bn Swissport Takeover

Swissport, the baggage-handler at the centre of a crisis at Gatwick Airport last year, is on the verge of being sold to a Chinese conglomerate for more than £2bn.

Sky News has learnt that HNA Group is expected to sign a deal to acquire Swissport International later from PAI Partners, the buyout firm, later on Wednesday.

An announcement about the deal is likely to be made on Thursday, according to banking sources.

The takeover will be one of the largest overseas acquisitions by a Chinese company so far this year, and underlines the country's continuing appetite for substantial cross-border deals.

Swissport will be among the most recognisable western brands to become owned by Chinese interests, following companies in the UK such as Weetabix.

China's sovereign wealth fund, China Investment Corporation, owns a substantial stake in the owner of Heathrow Airport,

HNA, which owns Hainan Airlines, China's fourth-biggest carrier, is understood to have been in talks to buy Swissport for several months.

The deal will bring to an end separate discussions that PAI was holding about listing Swissport on the stock market.

Earlier reports had suggested that negotiations between HNA and Swissport could break down over the value of the company.

Swissport provides ground-handling and cargo services to approximately 700 aviation customers, and was sold for more than $900m to PAI in 2010.

It calls itself the world's largest provider of such services, dealing with 229 million passengers and 4.1 million tonnes of cargo annually.

The company employs roughly 60,000 people, and operates at more than 269 airports in 48 countries.

It encountered a barrage of negative publicity last year when thousands of passengers experienced delays receiving their baggage at Gatwick, with the airport blaming Swissport for "failing to meet" the standards expected of it.

News of the sale to HNA Group comes just three days before Eric Born is due to take over as Swissport's president and chief executive.

A former executive at Wincanton, the London-listed logistics group, Mr Born is still expected to assume the role on August 1.

A PAI spokesman declined to comment.